|Area Responsible for Administration:||Finance|
|Approval Authorities:||Senior Executive Committee|
|Approval Date:||November 2016|
|Review Timeline:||Every 3 Years|
To outline and regulate the signing authority of externally binding transactions and contracts.
This policy applies to all Seneca employees and includes all externally binding transactions, agreements and contracts.
1. Policy Statement
Signing authority within Seneca is determined by an employee’s organizational position and applies to commitment authority, cheque authority and payment authority. It is essential that all binding decisions are made with the proper authority and accountability as aligned with the attributes and significance of the decision, and that the control of funds is always exercised appropriately.
2. Terms and Conditions
2.1 This policy is governed by the following terms and conditions:
2.1.1 Appropriate signing authority is required for an employee to commit Seneca to expenditures or other contractual obligations, to authorize payments and to transfer and/or assign securities.
2.1.2 Violation by an employee of their signing authority may be considered a breach of employment contract. Refer to Appendix A for the approval limits of all signing authority levels.
2.1.3 Signing authority is determined by organizational positions. If an employee changes positions within Seneca, his/her signing authority shall change to align with the new position.
2.1.4 When an employee leaves Seneca, his/her signing authority shall be cancelled by their effective departure date.
2.1.5 Seneca may rescind the signing authority of an employee at any time when deemed necessary, without disclosing cause.
2.1.6 Should a purchase requisition, contract or payment amount exceed an employee’s authorized approval limit, the request must be approved by an employee with adequate signing authority.
2.1.7 When approving the purchase of goods and/or services received, the employee with signing authority must ensure that the purchase meets the intended need and that the terms and conditions of Seneca’s Purchasing Procedure are met.
2.1.8 An employee must not authorize a transaction or contract from which they may benefit. This includes approving a payment for their own expenses and/or reimbursements.
2.1.9 A contract or transaction commitment must not be reduced to avoid exceeding the approval limits of an employee’s authority level. Examples of these reductions could include subdividing projects, procurements and contracts or awarding multiple consecutive purchases to the same vendor.
2.1.10 During a temporary absence, an employee shall delegate their signing authority to another employee. The absent employee’s direct supervisor must approve the delegation prior to its effective date. Contracts and transactions shall be forwarded to the absent employee’s direct supervisor if there is no prior delegation of signing authority.
3. Commitment Authority
3.1 Commitment signing authority may be exercised on the following transactions:
3.1.1 Purchase Requisitions (PR)
3.1.2 Purchase Orders (PO)
3.1.3 Contracts and Agreements
3.1.4 Lease Agreements
3.1.5 Legal ServicesRefer to Appendix A for the approval limits pertaining to legal services.
3.1.6 Sale and Transfer of Securities
4. Cheque Authority
4.1 Cheque signing authority may be exercised on the following:
4.1.2 Wire and Electronic Funds Transfers (EFT)
5. Payment Authority
5.1The signing authority levels for payment of goods and/or services received are equivalent to those stated in Appendix A. Should an amount exceed an employee’s signing authority, the request must be approved by an employee with adequate signing authority.
5.2 The Accounts Payable department shall process invoices with approved POs for payment. POs must be generated prior to the delivery of the related goods and/or services.
5.3 Payroll, statutory deductions and other similar payments shall be paid by EFT. The department managing the activities shall be the initiator of the EFT.
5.4 Prior to preparing an invoice or other payable for payment, the Accounts Payable department must conduct controls that ensure:
|Purchase Requisitions – Goods and Services With Budget||Purchase Requisitions – Goods and Services Without Budget||Contracts and Other Agreements||Legal Services||Lease Agreements||Sale and Transfer of Securities|
|• Vice President, Finance and Administration||$1,000,000||$500,000||$1,000,000||$200,000||$500,000||Authorized|
|• Vice President, External
• Vice President, Academic
|• Executive Directors
• Associate Vice Presidents
|$200,000||Unauthorized||$200,000||Executive Director, Human Resources - $100,000||Unauthorized||Unauthorized|
• Director, Finance
|$100,000||Unauthorized||Unauthorized||Director, Finance - $100,000||Unauthorized||Director, Finance – Authorized|
|• Directors (reporting to the above listed authority levels)||$50,000||Unauthorized||Unauthorized||Unauthorized||Unauthorized||Unauthorized|
• Associate Directors